Related Topics
Take Another Quiz

Principles Of Microeconomics Examination

6 Questions
Principles Of Microeconomics Examination

This quiz examines the users understanding of Principles of Microeconomics.

Questions and Answers
  • 1. 
    Monopolistic competition means:
    • A. 

      Many firms producing differentiated products.

    • B. 

      A situation where competition is based entirely on product differentiation.

    • C. 

      A large number of firms producing a standardized or homogeneous product.

    • D. 

      A few firms producing a standardized or homogeneous product

  • 2. 
    • A. 

      45

    • B. 

      25

    • C. 

      30

    • D. 

      40

  • 3. 
    If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:
    • A. 

      Increasethe amount demanded by more than 10 percent.

    • B. 

      Decrease the amount demanded by more than 10 percent.

    • C. 

      Decrease the amount demanded by less than 10 percent.

    • D. 

      Increase the amount demanded by less than 10 percent.

  • 4. 
    • A. 

      Demand is inelastic at this price

    • B. 

      The firm is maximizing profits

    • C. 

      Total revenue is at a maximum

    • D. 

      Total revenue is increasing

  • 5. 
    The above diagram indicates that the marginal revenue of the sixth unit of output is:
    • A. 

      -$1

    • B. 

      $1

    • C. 

      $4

    • D. 

      $24

  • 6. 
    • A. 

      Applies only to pure competition.

    • B. 

      Applies only to pure monopoly.

    • C. 

      Does not apply to pure monopoly because price exceeds marginal revenue.

    • D. 

      Applies both to pure monopoly and pure competition